Local Fiscal Policy On the Wrong Track
Posted by Jeff Pruitt - 5/5/09 @ 11:47 pm - Filed Under Featured, Local Politics
Given the tax-happy sentiments of our local officials, one might get the feeling that we’re not in the middle of a massive economic recession. But of course we are, so I find it puzzling that we’re raising taxes everywhere we can. For example, the county wants to double the wheel surtax to pay for bridge maintenance.
Keep in mind that the only reason they don’t have enough money to pay for their bridges now is due to their poor planning and decision making in the past when they chose to eliminate the cumulative bridge fund. But this isn’t solely on the county anymore as the city is preparing to collect 35% of this tax increase for its own use.
Another tax increase is coming thanks to your local state legislators creating the new Capital Improvement Board - including Senator Long who sounded quite excited talking about it on NPR a couple of days ago. This new board will take the excess food and beverage taxes that are not needed to pay down debt on the Coliseum and use it for future “Capital Projects”. This is money that could, and should, go back to the taxpayers as was promised when the 1% food and beverage tax was created years ago.
On top of that, city sewer customers are likely going to see their bills triple in order to fix the Combined Sewage Overflow problem mandated by the EPA. And don’t forget there was also a push to double the alcohol tax before public outrage killed it.
With the price of materials and wages falling I guess I just don’t understand why the government needs even more money - especially at a time when there’s less to go around…
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24 Responses to “Local Fiscal Policy On the Wrong Track”
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Why our local government is blind to local issues like sewers is beyond me. Why on Earth do we not have a balanced budget? Come on.
I’m so glad this blog understands that our government is so out of control. It’s not about political affiliations anymore. We are being micro-managed by a nightmare of legacy costs we can not afford!
This includes… local, state and federal government expansion! Can you say quagmire: a difficult, precarious, entrapping predicament!
I am screaming at the top of my lungs!!! Stop spending…slow down…plan your work & work a long term plan!
Sewers Don’t Sell. You can’t give it a tax abatement, and you can’t sell it to a local developer to build a strip mall on or next to it.
I’m not a fan of the stimulus bill, but these sort of unfunded mandates from the Federal government seem like the kinds of projects to which so-called stimulus money should be applied.
As long as there is no pressure from the Federal government to get into compliance, I don’t believe any local politician is going to spend any locally generated revenue, or political capital on fixing this problem. Frankly, though it is a well known problem, I don’t see or hear many local residents demanding a solution. More people showed up to the old Baker Street Station to “rally for rail” (something that will probably never happen) than you could probably muster to petition local officials on the CSO problem. Perhaps someone should organize, “sound-off for sewers”.
If local residents demonstrated half the interest and energy of the recent Canyon Cliffs debate on the CSO issue, the local Government officials would likely begin doing something about it. I believe their political calculus is, they aren’t going to lose an election over it, the Federal Government isn’t pressing them for compliance on it, so why stick my neck out, even if it’s the right thing to do.
I do agree with Bobett however, at least include it in a plan that can be worked over time. Plan your work, work your plan.
The City has adopted a plan, approved by IDEM, EPA and a federal judge. It is called the Long Term Control Plan and has been available for over a year on the city’s website, http://www.cityoffortwayne.org/cleanrivers.
Fred is correct that this is the sort of thing that requires federal enforcement, and for which federal spending is appropriate. The federal enforcement part has already happened. Less so with the federal spending part; of the >$240 million that we must spend over the next 15 years on the long term control plan, we have received $1.5 million in a grant. According to the State of Indiana, our sewer rates aren’t high enough to justify additional stimulus dollars or 0-interest loans.
No one is happy about raising sewer rates, but the fact of the matter is that it must be done. We have been out of compliance with the Clean Water Act since the 1970’s (as have most other cities in this part of the country, since their sewer systems were designed like ours). Our great grandparents made investments in infrastructure that have helped us today, and we need to do the same for future generations.
We’ve known this was needed and coming for a long time. In my mind the cost for this particular project is justified. What’s troubling is that we have countless other government entities (think FWCS) looking at their their own “needs” who don’t care about or consider the overall effect on the taxpayers. No one locally is responsible or accountable for the total burden.
Everet is right on. We have the public library building a Tajmohal, we have the governor saying Indiana had a surplus when the unemployment fund has been decreasing for seven years or more if you look at liabilities. We have Harrison Square, TIFS which rob today’s taxpayers of revenues while paying for the services they use today. We have Fort Wayne, who knew about the sewer problem for decades and never began to accrual any of the costs. This means those who lived here decades ago who created the mes never paid for leaving it for us to pay for.
When you build something, you need to be considerate of others. How many did not think that dumping raw sewage in the rivers would be a bad thing for someone else down stream? How much would it have cost to do it right to begin with? I can tell you it would have been 90% cheaper than the cost to repair it now and it only fixes 90% of the problem. Why are we satisfied to fix only 90% of the problem? Does this mean that government has built in a problem for the future to fix?
The problem is there are few to step up and tell it like it is. Too few politicians want to be the bearer of bad news and too few voters vote for those who do. In the end we all loose.ing
1) The creation of the Capital Improvement Board is not an increase in tax. The 1% restaurant tax already exists. This simply diverts the excess revenues away from the coliseum and to this board so that they can decide where the money is best spent in our community. This would allow future capital projects to be financed by the 1% restaurant tax and cause less reliance on general property taxes. This also takes the decision making away from the government (Allen County Coliseum) and into the hands of citizens appointed to the CIP board. So as I see it we are funding future projects from a better revenue stream (an optional sales tax vs an income or property tax) AND taking some decision making abilities away from government. Seems like a win-win to me.
2) Nobody that is alive today created the CSO problem. The solution to pollution is dilution use to be “scientifically proven.” The fact that there is a problem can in no way be blamed on any current administration. You’re just bickering. And the fact that “only 90%” of the problem is being fixed is because they are considerate of Joe citizen’s pocket book. They don’t want to build the Taj Mahal of CSO systems.
The Memorial Coliseum board members are citizens appointed by local government. The Capital Improvement Board is just another name for the Grand Wayne Board which is just another name for the Convention & Tourism Authority (not to be confused with the CVB) who are citizens appointed by local government. How does taking away the food and beverage tax from one citizen led board and giving it to another citizen led board make sense? The “government” will be just as involved in making decisions at Memorial Coliseum as it will be on the CIB.
Also, Memorial Coliseum doesn’t lose money each year. The Grand Wayne unfortunately does. So we are going to give a million bucks a year to the same people who lose money hand over fist and think they will know best how to spend it?
Just some food for thought.
To be honest, I like the idea of a CIB, just not the way that the General Assembly made it happen.
Karen,
How could anyone argue that we haven’t invested in infrastructure? We have built numerous roads, interstates, bridges, sewer and water lines, flood control projects, etc. One only needs to compare a city map from the 50’s to a map from today to see how much infrastructure has been built.
The problem isn’t that we haven’t done enough it’s that our priorities are out of whack. We’ve continuously expanded our infrastructure outward while the core of the city has hollowed.
The new roads/bridges/sewers need maintenance but so do the older sections - unfortunately there’s nobody living there to pay for it. The continuous expansion of infrastructure is unsustainable and it’s money that’s wasted when we could’ve been fixing our sewers (or other projects).
That’s what frustrates me so much when the county says they can’t maintain their bridges but yet they want to build another one to nowhere all in the name of economic development. The problem is it’s costing them $2 to bring in $1.50 (so to speak).
Can’t afford the highway maintenance - build more!
Can’t afford the bridges - build more!
Can’t afford our jail - incarcerate more people!
Where does it end? This is a big reason why government continuously needs more and more money. I say we should start taking care of the stuff we have and stop the expansion.
And for heaven’s sake stop the tax increases during a massive recession. The federal government can print money to pay for their projects (which is ultimately a tax increase but I digress), but local government can only tax people more and that is just immoral in this economic climate.
Luke,
Don’t be duped by the spin. If this board were not created then the “temporary” 1% food and beverage tax would expire after the Memorial Coliseum bonds were paid off. Thus your taxes would be lower.
They have taken a tax that was enacted for one thing and expanded to include something else - it’s a tax increase no matter which way you slice it.
If we would better manage our infrastructure needs then we wouldn’t need to find new revenue sources to fund them.
One other thing - I believe a big reason why we won’t see any stimulus money for the sewer project is because our Congressman is completely ineffective and irrelevant.
Jeff
Surely you jest. Do you think that 469 magically got named the Reagan Expressway (or whatever its called) by itself? These kind of important legislative enactments just don’t happen by themselves.
“2) Nobody that is alive today created the CSO problem. The solution to pollution is dilution use to be “scientifically proven.” The fact that there is a problem can in no way be blamed on any current administration. You’re just bickering. And the fact that “only 90%” of the problem is being fixed is because they are considerate of Joe citizen’s pocket book. They don’t want to build the Taj Mahal of CSO systems.”
This is not true. Are you saying the oldest person in Fort Wayne is younger than 40? WE are all responsible because those who could vote did not vote responsibly. They looked out for themselves and sold the future out. Look at the City Council members. Some of them have been there a long time. Although one was removed by the voters this past election. This problem has been known for a long time, but no administration has taken ownership of this. They simply looked the other way.
As for being considerate of the taxpayers pocket book, they are looking at today’s pocket book and most likely dipping into future generations of pocket books.
The 1% tax on food and beverage is set to expire. It was a dedicated tax for a dedicated purpose and with that said had a set expiration date. To change it now and use it for other purposes is wrong
One more thing that has been a known problem and that is the pensions of police and fire for those prior to 1977. They never set aside funds to pay them. This liability is growing and what administration has done anything to fix it?
The CIP gets access to the food and beverage tax money UNTIL that law sunsets. The new legislation DOES NOT allow the tax to continue- that would take seperate legislation.
The last I heard, the Coliseum is sitting on $10 MILLION of food and beverage tax money that was paid in excess of the bonds (a nice little slush fund to have lying around).
The CSO problem was NOT a problem when the system was designed. Nearly every sewer system in the midwest was designed the same way. Jeff is right= no one alive today made this decision- and even if they had, they would have made the “right one” for the time.
CIP = CIB- sorry!
Kevin and Jeff Pruitt agree on something!!?? Now I can say I’ve seen it all…. ; )
“The CSO problem was NOT a problem when the system was designed. Nearly every sewer system in the Midwest was designed the same way. Jeff is right= no one alive today made this decision- and even if they had, they would have made the “right one” for the time.”
In engineering or industry we call that product liability. Just because everyone else does it or did it does not make it right. This EPA decision dates back decades. How many more streets were added and homes connected since then? Did new connections meet the new designs or the old ones?
“Nearly every sewer system in the midwest was designed the same way.” Are you saying specifications given the designer allowed the sewage and storm water to meet or the assumptions of the amount of storm water runoff and the amount of sewage expected were wrong? This is a design error pure and simple.
In many ways this is no different than a developer clearing land to put impervious surfaces on most of it. The amount of runoff is tremendous. The calculations used by civil engineers (Rational Method) have a huge flaw that underestimates the amount of storm runoff for different specified storms. Many developers rely on these formulas. Who is responsible for the errors and damage caused? The person who uses the formula or the person who fails to verify they model the storm? When Southtown was built they underestimated the storm water runoff. When it was demolished and the new Wal-Mart and Menards, police academy were built, did they use the old permit guide lines even though they were wrong or did the require a much larger retention pond/holding facility?
Jeff P.,
Souder requested an Earmark of $500,000 for Fort Wayne’s CSO problems just last year. It was co-sponsored by both Lugar and Bayh. We ended up getting $492,000 as a result.
http://www.legistorm.com/earmark/11336.html
Just thought you ought to know :)
“One other thing - I believe a big reason why we won’t see any stimulus money for the sewer project is because our Congressman is completely ineffective and irrelevant.”
Them to whom do we owe credit for still having an Air Guard unit and a VA hospital?
Paul,
VA Hospital- thank Tom Hayhurst. Until Hayhurst used that issue in his campaign for Congress, Souder DID NEXT TO NOTHING.
Air Guard? Sorry, I am pretty sure that Ed, Marla and Linda took credit for that!
Tom Hayhurst? Guess I’ll have to thank him for making it an issue… and for loosing the election! My research says that the possibility of the VA closing did not occur until May 2004. In the Journal Gazette May 11, 2004:”I will do everything possible to keep this hospital inpatient ward from closing if they’re all going to be transferred to Indianapolis,” Souder said. “We’re not going to win the argument for keeping Fort Wayne, but we can make a fight. … We’ll fight in the appropriations process — we have weapons.”
May have taken a contested political race, but we did win!
(Give me some time on the Air Guard thing)
Let me get this straight: The fact that there was a possibility that the VA might close PLUS the fact that Mark Souder said he would fight to keep it open PLUS the fact that it did stay open, NECESSARILY LEADS to the conclusion that Mark Souder deserves credit?
I’m going on record as saying that I will fight to assure that there will not be a massive outbreak of Swine flu in Fort Wayne. Paul, if there is no outbreak, you know who to thank.
Not at all, Keith. As I said, I’m giving the credit to Tom Hayhurst as Mr. Knuth inferred that I should.
I apologize for my attempt to use facts to demonstrate that Rep. Souder is NOT “…completely ineffective and irrelevant.”
The question that should be asked is should the VA even be building hospitals to care for veterans? How many have had to use the VA for medical care? Would it be cheaper to use medicare to cover the disabled veterans where there is a medical infrastructure with better care? Maybe a less costly optin is to use the VA budget for buildings and treatment to pay private providers to cover disabled veterans?
Maybe what we truly needed was for Mark Souder and the other 534 representatives and senators to use the VA for care for one year and then decide what to do. Maybe Souder fought the wrong battle?